Electrolux 2003 Annual Report Download - page 11

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Electrolux Annual Report 2003 9
We’re investing more in
product development
The front end of our product development process is a road-
map for generating consumer insight. We maximize efforts to
generate deep consumer understanding and knowledge.
Our goal is to develop products and services that profitably
satisfy our consumers’ identified needs.
Product development based on consumer insight
Our product development process has been improved for better precision.
Market
segmentation Focus
groups
Problem
detection
study
Consumer
insight 1 Consumer
insight 2 Consumer
lab Concept
evaluation
Concept
develop-
ment
Product
development
Ice maker
The Electrolux side-by-side
refrigerators feature ice-makers
that serve cubes, crushed ice or
ice-water. There is also an Extra-
Ice function for large volumes.
Consumers are willing to spend more for
products that better meet their real needs and
preferences. Product innovation is therefore a
key to profitable growth. That’s why we expect
to increase our investment in product devel-
opment from about 1% to about 2% of sales
over the next few years.
In order to make sure we get good returns
on these investments we have improved our
product creation process. This will result in
greater precision, shorter lead times and
shorter product cycles.
Our need-based market segmentation model
is now the starting point for all new products.
Clearly defined user needs are required for
allocation of investment in a new product.
In 2002 we set up a central function dedi-
cated to understanding consumer needs, and
we’re committed to developing more compe-
tence and investing more in this area through-
out our operations. Today, we also measure
consumer attitudes more systematically in
order to learn more about their needs and
behavior in relation to our products.
Product development